“We will introduce FortiOS 8.0 at Fortinet's Annual Customer and Partner Conference in March, featuring significant new capabilities in security and networking, especially in AI security, such as agentic AI security in enterprise, plus a new bundled SD-WAN and SASE service.”

In context

“Ken Xie (Founder, Chairman and CEO): Thank you, Anthony, and thank you to everyone for joining our call. We are very pleased with our excellent fourth quarter growth, driven by broad-based demand across our platform as billings increased 18% and revenue grew 15%, driven by product revenue growth of 20%. Our provision margin was strong at 37%, reflecting our continued focus on profitability. Secure networking billing grew 13%, outperforming the overall secure networking market as we continue to gain market share. Fortinet remained the #1 firewall leader with a 55% unit market share and the highest product revenue among our segment security peers. Fortinet has led the convergence of networking and security for over 25 years, and secure networking is expected to surpass traditional networking by the end of this year. Our firewall leadership is driven by FortiOS, which unifies networking and security, and our FortiASIC technology delivers 5x to 10x better performance than competitors while lowering the total cost of ownership and energy consumption, which provides a large advantage in securing AI data centers. We will introduce FortiOS 8.0 at Fortinet's Annual Customer and Partner Conference in March, featuring significant new capabilities in security and networking, especially in AI security, such as agentic AI security in enterprise, plus a new bundled SD-WAN and SASE service. We also recently partnered with NVIDIA to leverage their BlueField 3 DPU to secure AI infrastructure. Unified SASE billing grew 40%, representing 27% of our total billing, supporting our belief that Fortinet is the fastest-growing SASE leader in scale. Our momentum is powered by three key advantages. First, Fortinet uniquely integrates firewall, SD-WAN, and SASE on a single operating system, allowing customers to expand SASE in minutes and driving upsell across a large customer base. Second, we support both Sovereign SASE and Public SASE, allowing enterprises and service providers to deploy SASE in their own data centers to meet data privacy, sovereignty, and compliance requirements. We are seeing strong demand in Sovereign SASE, and none of our major SASE competitors offer a Sovereign SASE solution, making Fortinet's total Unified SASE addressable market significantly greater than our peers. Third, our owned and long-term invested global cloud infrastructure delivers high performance and security at roughly one-third of the total cost of ownership of our peers. These differentiators position Fortinet as a leader in the 2025 Gartner Magic Quadrant for SASE platform. AI-driven secured billing grew 6% in the fourth quarter and 22% for the full year, while ARR was up 21%. Our strong performance was driven by more than 20 AI-powered solutions as customers consolidate multiple security vendors onto Fortinet's platform. Additionally, Fortinet's leadership in security also extends to operational technology and the cyber-physical system, offering enhanced visibility, robust threat protection, and secure connectivity. The demand for OT solutions has driven significant growth, with billing up more than 25%. Finally, we reaffirmed the midterm target we shared at our Analyst Day, reinforcing our commitment to continue to grow faster than the overall market, including delivering billing and revenue CAGR above the market growth of 12% and achieving a Rule of 45. I would like to thank our employees, customers, partners, and suppliers worldwide for their continued support and hard work. I will now turn the call over to Christiane.”